Proof
(credit to cut the knot)
First, let a=MP=MQ and x=XM and y=YM. We drop perpendiculars from X and Y to AM, DM, and BM, CM, respectively. We call these perpendiculars XX1,XX2,YY1, and YY2, respectively, with lengths x1,x2,y1,y2.
We see four pairs of similar triangles, and we get a ratio from each:
MXX1∼MYY1
yx=y1x1
MXX2∼MYY2
yx=y2x2
AXX1∼CYY2
y2x1=CYAX
DXX2∼BYY1
y1x2=YBXD
Then, from the above expressions, we get:
y2x2=y1x1⋅y2x2=y2x1⋅y1x2=CY⋅YBAX⋅XD
By power of a point,
CY⋅YBAX⋅XD=PY⋅YQPX⋅XQ=(a−y)(a+y)(a−x)(a+x)=a2−y2a2−x2
So in the end, we have:
y2x2=a2−y2a2−x2
Getting rid of denominators and expanding gives:
a2x2−x2y2=a2y2−x2y2
a2x2=a2y2
x=y
So, this means that M is the midpoint of XY, so we are done.